At the turn of the century, if you had told somebody that recreational marijuana would be legal across many states in this country, they probably would have laughed. Nobody is laughing now as the industry continues to grow at a breathtaking pace. Currently, the District of Columbia and 11 states (Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont and Washington) have adopted the most expansive laws legalizing marijuana for recreational use.
Marijuana multistate operators have grown dramatically over the past few years, but a massive catalyst is right around the corner that could give the industry a boost. This catalyst could really be the tipping point for some of the bigger states, especially those on the east coast, and the election is just two short weeks away.
A Democrat in the White House seemingly would be a very positive catalyst for the industry, as Senator Harris has already said a Biden administration would legalize recreational use and expunge marijuana convictions for possession for personal use.
The truly important votes will be in the states where recreational marijuana will be on the ballot. Arizona and New Jersey are the most notable potential adult-use states, together making up over 5% of the U.S. population. In particular, many on Wall Street are focused on New Jersey, where the state could prove to be a domino to nearby states legalizing cannabis, including New York, Pennsylvania and Connecticut. The proximity of New Jersey to those states could bring in the potential for millions of customers.
We screened our 24/7 Wall St. research database looking for stocks that were rated Buy at major Wall Street firms. We found four that make sense for aggressive investors now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company is very close to achieving positive cash flow. Aphria Inc. (NASDAQ: APHA) engages in the production and supply of medical cannabis. It operates through the following segments.
The Cannabis Operations segment produces, distributes and sells both medical and adult-use cannabis. The Distribution Operations segment’s operations are carried out through its wholly owned subsidiaries: ABP, FL Group and CC Pharma. The Business Under Development segment includes operations in which the firm has not received final licensing or has not commenced commercial sales from operations.
Cantor Fitzgerald has an $11.75 price objective on the shares. Note that no Wall Street consensus was posted for any of the companies we researched. Aphria stock closed Monday’s trading at $4.68 per share.
This company has made a string of acquisitions to grow the scale of its overall business. Aurora Cannabis Inc. (NYSE: ACB) produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.
The company’s products consist of dried cannabis and cannabis oil, CanniMed vegan capsules and hemp products, as well as sells vaporizers, consumable vaporizer accessories and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers, and it provides cannabis analytical product testing services.
The Cantor Fitzgerald price target is a gigantic $18, and Aurora Cannabis was last seen trading at $4.71 a share, which is very near a 52-week low.